i have been looking at pricing time spread options on commodities. And have been struggling to figure out whether method or model exists...There are several problems I am encountering...1. Most people tend to agree that the distribution is mean reverting.2. Changes in behavior could be affected by the seasons.The most spoken about model seems to be from Kirk (1995) - which is really a dual asset pricing model. This doesn't seem good, I am simply looking at 2 different contracts of 1 commodity. I am not sure if it would fit well.I dont think using the binomial model is possible either.Does anyone have any experience in this area?